Hey everyone!
For those who’ve been following along with my updates on this system, I wanted to share a recent change I made to the hedge I’ve been using—and explain a bit about why I made it. While it’ll take a couple of days for the system description to reflect this update, I thought it was worth posting a heads-up in the meantime.
Originally, I was hedging the Semiconductor Index (SOXX) using the Nasdaq 100. This approach has served well historically, both in backtesting and my own trades. But over the past few weeks, I dug a little deeper into some recent data, comparing SOXX to various other indexes, and a clear pattern emerged: SOXX has significantly outperformed the DJIA (Dow Jones Industrial Average). Given this trend, I’m now planning to align the hedge to take advantage of this SOXX-DJIA relationship instead of the Nasdaq 100.
Thanks for tuning in, and as always, feel free to reach out with any questions or thoughts!
